FREEMIUM Business Model

What is the model ?

A definition found in Wikipedia :
"The freemium business model works by offering basic services for free, while charging a premium for advanced or special features.
The word freemium has been created combining the two aspects of the business model: free + premium.
The business model has gained popularity with Web 2.0 companies."

How does “free” in fact generate revenue?

With:
- subscriptions
- advertising / “e-pub”
- professional charging versions: by paying you can install plugins which enable you to have more functions
- charging special, personalised or advanced services
- including e-commerce sections (ex.: MySpace)
- better mails stocking capacity and absence of advertisements (for mail services)

Other examples of online companies that are using Freemium business model :

- MySpace: is a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music and videos.
- Viadeo (new version of Viaduc.com): is a professional network that helps you find clients, partners or collaborators, gain more visibility and make you known by recruiters, etc. Viadeo is free but it provides you with some paying services and "premium subscriptions".
- Digg.com: "is a digital media democracy. As a user, you participate in determining all site content by discovering, selecting, sharing, and discussing the news, videos, and podcasts that appeal to you."
- Tribe.net : is another social networking website.
- Friendster: idem as Tribe.net

More articles read in:
http://www.zdnet.fr/
http://www.journaldunet.com/